Correlation Between Maxvision Technology and Shaanxi Construction
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By analyzing existing cross correlation between Maxvision Technology Corp and Shaanxi Construction Machinery, you can compare the effects of market volatilities on Maxvision Technology and Shaanxi Construction and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Maxvision Technology with a short position of Shaanxi Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Maxvision Technology and Shaanxi Construction.
Diversification Opportunities for Maxvision Technology and Shaanxi Construction
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Maxvision and Shaanxi is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Maxvision Technology Corp and Shaanxi Construction Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Construction and Maxvision Technology is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Maxvision Technology Corp are associated (or correlated) with Shaanxi Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Construction has no effect on the direction of Maxvision Technology i.e., Maxvision Technology and Shaanxi Construction go up and down completely randomly.
Pair Corralation between Maxvision Technology and Shaanxi Construction
Assuming the 90 days trading horizon Maxvision Technology Corp is expected to generate 0.82 times more return on investment than Shaanxi Construction. However, Maxvision Technology Corp is 1.23 times less risky than Shaanxi Construction. It trades about 0.11 of its potential returns per unit of risk. Shaanxi Construction Machinery is currently generating about 0.05 per unit of risk. If you would invest 2,325 in Maxvision Technology Corp on September 26, 2024 and sell it today you would earn a total of 171.00 from holding Maxvision Technology Corp or generate 7.35% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Maxvision Technology Corp vs. Shaanxi Construction Machinery
Performance |
Timeline |
Maxvision Technology Corp |
Shaanxi Construction |
Maxvision Technology and Shaanxi Construction Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Maxvision Technology and Shaanxi Construction
The main advantage of trading using opposite Maxvision Technology and Shaanxi Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Maxvision Technology position performs unexpectedly, Shaanxi Construction can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Shaanxi Construction will offset losses from the drop in Shaanxi Construction's long position.Maxvision Technology vs. BeiGene | Maxvision Technology vs. Kweichow Moutai Co | Maxvision Technology vs. Beijing Roborock Technology | Maxvision Technology vs. G bits Network Technology |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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